WestRock Company reports fiscal Q3 ended June 30, 2023 net sales of $5.121 billion. The year-over-year decline in net sales was driven primarily by a $545 million, or 33.8%, decrease in Global Paper segment sales, which was partially offset by a $183 million, or 7.7%, increase in Corrugated Packaging segment sales. The increase in segment sales in the Corrugated Packaging segment in the current year quarter includes the operations of its former joint venture in Mexico since its December 2022 consolidation.
Net income declined in the Q3 of fiscal 2023 to $202 million compared to the prior year quarter primarily due to lower volumes excluding the Mexico acquisition, the impact of increased economic downtime and planned maintenance outages, higher restructuring costs, increased non-cash pension costs, higher net interest expense and business systems transformation costs. These costs were partially offset by the impact of higher selling price/mix, increased cost savings, contribution from the Mexico acquisition, net cost deflation and the gain on sale of an unconsolidated entity.
Consolidated Adjusted EBITDA decreased $204 million, or 20.2%, year-over-year, to $802 million primarily due to lower Global Paper segment Adjusted EBITDA that was partially offset by higher Adjusted EBITDA in our Corrugated Packaging segment.
“We delivered impressive results under challenging market conditions,” said David B. Sewell, CEO. “Our accelerated transformation strategy is exceeding expectations. We expect to exit the year with a cost savings run-rate of over $450 million. We remain focused on partnering with our customers, streamlining our portfolio, investing in our assets and further reducing costs. I’m excited about our execution as we continue to transform WestRock into a more efficient and more profitable company.”
WestRock Company is a global manufacturer of differentiated paper and packaging solutions.
